Procurement & Tendering Flashcards
What is Procurement?
How the services of a contractor are purchased
What is Tendering?
How the successful contractor is selected
What are the different forms of Procurement?
Traditional lump sum Traditional re-measurement Design and Build Construction Management Management Contracting Frameworks
What are the different forms of Tendering?
Open
Selective single stage
Selective two stage
Negotiated
What is serial tendering?
It combines competitive and negotiation
Client procures a project with contractor in a competitive way and includes in tender docs the rates for future works, these then form the basis of negotiations on future projects
What is Two Stage Tendering?
It separates the process of selecting a contractor from the process of determining the price of the works.
First stage is used to agree prelims, over-head and profit, programme.
What can the first stage appointment be based on?
Pre-construction and construction programmes
Method statements
Prelims
OH&P
Schedule of rates to be applied to stage 2
Agreed design fees
CVs of proposed staff
Agreed contract conditions for the second stage
What is a PCSA?
Pre-construction services agreement
A way for clients to employ contractors before the construction contract commences
Used to appoint contractors for stage 1 of a 2 stage tender
Why does Design and Build procurement appeal to clients?
Because it gives a single point of responsibility for the entire project
What services do contractors commonly provide under a PCSA?
Design Buildability advice Advice on packaging of works Appointment of specialist sub-contractors Cost planning Programming
What should be included in a PCSA?
JCT publishes 2 standard forms of PCSA, one for general contractors and one for specialists
Scope of services
Any design liability
What happens to design liability of the contractor is not appointed for the second stage
Set out method for payment
Appendix setting out all tender items to be applied to the construction contract
A statement that there is no obligation to proceed to the construction contract
What are the advantages of 2 stage tendering?
Allows client to transfer design risk to contractor
Client gains buildability advice
Client gains cost certainty
Client gains programme certainty
What are the disadvantages of 2 stage tendering?
Client loses leverage as the contractor becomes embedded in the project team and competition for the second stage reduces.
NB. Whilst tender prices for 2 stage projects may be initially higher than single stage (which are subject to full competition) the final account tends to include fewer variations and claims, due to early engagement and collaboration.
How do you deal with Errors in a Tender Return?
It depends on which alternative is selected from JCT practice note 6 (2017);
Alternative 1 - confirm or withdraw
Alternative 2 - Confirm or amend
What is the difference between Management Contracting and Construction Management?
In construction management the client is in direct contractual relationships with the trade contractors, the construction manager is not.
In management contracting the client is in a contractual relationship with the management contractor, who is in contractual relationships with the trade contractors
What is PAS 91?
Publically Available Specification 91 - provides a government standard for public procurmenet. Sets out content, format and use of questions used for construction procurement.
Government standard for construction related procurement.
It is mandatory for central government projects and recommended for others
In a Construction Management contract, who takes the risk for trade contractor performance?
The client
How is a Construction Manager likely to be paid?
Based on reimbursable costs + an agreed pre and post contract fee
When would a remeasurement contract be used?
When the works can be described in reasonable detail but the extent cannot. Usually civils.
What would you include in a Pre-Qualification Questionnaire
Details of Contract Particulars Company Turnover Relevant Experience and References Company Accounts Key Staff Management and Organisational Structure Health and Safety Records Quality Assurance Systems Provision of Bonds / Warranties / PCGs
Where would you find information on what to include on a PQQ?
The RICS provide a template for PQQs
What are the Contents of a Tender Pack?
Invitation to Tender Instructions to Tenderers Certificate of Bona Fide Tender Scope of Works Tender Drawings and Specifications Programme Requirements Environmental Considerations Commercials
What are the Contents of a Tender Report?
Executive Summary Introduction Lists of Tenders Received Tender Period Initial Tender Return Totals Any Qualification Identified Post Tender Adjustments Revised Tender Sum Issues to be Resolved Tender Returns V PTE Recommendation
How would you carry out a Tender Analysis?
Arithmetic check for errors
Check ageist PTE and current budget
Look for missing scope, exclusions, provisional sums
Resolve any errors against the JCT Practice Note 6 Alternative selected
Conclusion forms the basis of recommendation to client
How do you equalise tender returns?
The mean of the other tenderers
The highest of the other tenderers
Cost plan rate
What factors effect choice of Procurement Route?
Nature of the project Scope of works Measure of control by client Level of experience of client Accountability Appointment of a contractor Requirement for cost certainty Start and completion dates Post contract change
How will the chosen procurement strategy affect the project?
The client’s exposure to financial uncertainty
The client’s level of control over the design
The extent of the design required at tender
The level of information require in order for construction to commence
Contractor involvement in design
The project risk profile
Why is it important to continually review the procurement strategy?
Because the client’s attitude to risk may change over time as some risks materialise
How would you decide on the length of tender period?
JCT Tendering Practice note Complexity Size Time of the Year Market Conditions
What do Construction Management services include?
Procurement advice Advising on appointments Advising on buildability Defining KPIs for trades Cost planning and cost control Preparing a construction programme Identifying trade contractors Tendering trade contracts Arranging site accommodation Arranging labour Co-ordinating trades Collating as-built information
What forms of contract can be used for design and build?
JCT
NEC
ICE
GC Works
